METALS-Shanghai nickel leads gainers on bet price still rising

Published 8:32 PM ET Mon, 13 Nov 2017
Reuters

SYDNEY, Nov 14 (Reuters) - Chinese nickel futures led gainers in early trading on Tuesday, building on hefty overnight gains in the London market as consumers built positions as a hedge against further price rises.

"That was the reason behind the big move in London overnight and we're seeing follow-through in Asia today," said a Perth-bsed commodities trader, who declined to be named because he is not authorised to speak to media.

FUNDAMENTALS

* SHFE NICKEL: The most-traded nickel contract on the Shanghai Futures Exchange was up just over 2 percent to 101,520 yuan ($15,292) a tonne by 0100 GMT.

* LME NICKEL: Three-month nickel on the London Metal Exchange, however, eased slightly to $12,475 a tonne after galloping 3 percent higher overnight. Nickel has gained 23 percent this year, driven by hopes that growth in electric vehicles will boost demand for the metal in batteries. Nickel is mainly used to produce stainless steel.

* CHINA ALUMINIUM CRACKS: China's winter heating season has arrived and the aluminium market is still struggling to work out what impact it will have on the country's production.

* Asian stocks wobbled on Tuesday as investors awaited developments in U.S. tax reform efforts, while contemplating if a marked flattening in the U.S. yield curve might ultimately be a harbinger of an economic slowdown there.